Shapoorji Pallonji Group: After the successful IPO of its flagship construction company Afcons Infrastructure, Shapoorji Pallonji (SP) Group is preparing to take its real estate business public. The company has started talks with investment banks for this. According to sources, the company is taking this step to further reduce its promoter level debt. People associated with this matter gave this information to Moneycontrol. If the plan is successful, it could help strengthen the group’s financial position.
Bankers may be appointed for IPO next month
Sources said SP Group held preliminary talks with some investment banks last week. If the group decides to go ahead with the listing process, the appointment of bankers for the IPO will take place next month. Earlier this year, Shapoorji Pallonji (SP) Group set up a holding company – Shapoorji Pallonji Real Estate – for its real estate portfolio. Its objective was to consolidate all its real estate assets under one roof.
This step has been taken to streamline the group’s corporate structure and make it easier to monetize the value of the business. This will help the group better manage its real estate business and attract investors.
A source said that the company can sell shares worth Rs 4000-5000 crore in the proposed IPO of real estate business. He said the group may consider raising a larger amount depending on market conditions. However, fund-raising details have not been finalized yet. “Since SP Group is looking to reduce debt at the promoter level, the IPO will involve a large secondary share sale while some funds will also be raised to repay debt in the real estate business,” he said. There was no response to the email sent to SP Group at the time of publishing the report.
Shapoorji Pallonji’s real estate business
Shapoorji Pallonji Real Estate has a development potential of over 142 million square feet and has a presence in cities such as Mumbai, Pune, Bengaluru, Gurugram and Kolkata. Its portfolio is diversified, ranging from luxury apartments and fine residences to affordable homes for mid-income homebuyers. Additionally, the company is developing one of India’s largest mass housing projects in Shukhobrishti, Kolkata, where 20000 affordable houses are being built.
SP Group’s residential real estate portfolio includes BKC 9, BKC 28 and The Odyssey in Mumbai; Wildernest and Vahana in Pune; Bengaluru includes projects like Parkwest 2.0. The group also has several residential projects under the Joyville brand in Mumbai, Pune and Gurugram. Its commercial real estate portfolio under SP Infocity includes office properties in Pune, Nagpur and Manesar.